"It's an economic disaster, as well as an ecological disaster, as well as an environmental disaster," he said.

"We've been trying to work with government and industry for many years to get meaningful management regimes in place and that simply hasn't happened.

"We're left with a situation where we can either do something now and fix the industry and fix the problem or we can let it go."

Mr Bryan says the Trust plans to take the Commonwealth to the Federal Court to explain its decision.

"If the minister is found to have not followed the law then the approval is overturned."

'Sustainably managed'

A fisheries researcher is confident Tasmania's rock lobster fishery is being managed sustainably.

Marine Biologist, Caleb Gardiner, from the Institute of Marine and Antarctic Studies told ABC Local Radio studies showed stock numbers were increasing.

"The really important thing, and I think where Tasmania's industry has done well, is they've responded," he said.

"So that willingness to change if there's a problem, that's the most important thing to do in looking forward with the lobster stock.

"They need to continue to be adaptive."

Rodney Treloggen from the Rock Lobster Fishermen's Association says a ban would devastate the industry.

"Won't that be wonderful? Won't that be wonderful for Tasmania," he said.

"We have an $80 million export industry what are we going to do with the fish if we catch them?"

He says the flow on effect would be a disaster.

"If it did that you could halve the value of the fishery straight away, put half the people out of work,

"It's not just the people directly at the coalface it's all the people that rely on a buoyant sustainable ecologically friendly fishery which is what we're working towards."

Seafood processor and exporter Michael Blake says lobsters will still be caught, but their value will plummet.

"We're already looking at different markets and trying to increase the Australian market but this would cause massive volume problems, to compete with WA who put a lot of product into Australia as well, at a cheaper rate," he said.

The Deputy Premier Bryan Green has dismissed the Tasmanian Conservation Trust's legal threat as a stunt.

Mr Green says there is no scientific basis to the claims.

He says the Tasmanian Government has already made cuts to the total allowable catch to secure the long-term viability of the fishery.